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Selecting the country in which to start internationalization: The non-sequential internationalization model

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  • Alvaro, Cuervo-Cazurra
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    Abstract

    The paper analyses the selection of the country in which a firm starts internationalization. It proposes that some firms strategically choose a non-sequential internationalization, that is, they select a country that is dissimilar to their country of origin for their first foreign expansion. The reason for this is that some firms develop, in their home country, three types of knowledge that are useful to overcome foreign expansion difficulties: knowledge to manage complexity, developed by having multiple operations at home; knowledge to manage differences in competitive conditions, developed by operating in business-to-business industries, and knowledge to manage differences in institutional environments, developed by allying to a foreign firm at home.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 46 (2011)
    Issue (Month): 4 (October)
    Pages: 426-437

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    Handle: RePEc:eee:worbus:v:46:y:2011:i:4:p:426-437

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    Related research

    Keywords: Internationalization process Non-sequential internationalization Sequential internationalization Born-global firms Knowledge Multinational firms Developing-country Middle East;

    References

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